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hey there bloomies today we've got an intriguing topic to dive into with a special guest Vladimir smis the question we're tackling crypto regulation does it help or hurt the world of digital currency should we be embracing regulations or sticking to that free willing no rules vibe that brought crypto to life well let's dive into both sides of the debate and see what Vladimir has to say let's go hello everyone this is Vladimir smiris this is a short video on whether cryptocurrency regulation in the world is good or bad do we need regulation or should everyone be crypto anarchists let's figure it out together in this journey let's go on one hand blockchain does not tolerate any regulation that's what the crypto anarchists told us Bitcoin is equal to one Bitcoin we should not compare it to the dollar it doesn't matter if Bitcoin is worth $1k or $5k one Bitcoin is one Bitcoin but we understand that in modern realities this is not quite the case after all the growth of the crypto industry and the increase in capitalization allow to attract more and more people and if we have more people in the industry and want them to feel comfortable Regulators unfortunately or fortunately are needed and for what exactly do we need them well let's take the simplest example there is a person who has never heard of the crypto industry or cryptocurrency before he needs to buy his first Bitcoin or perhaps his first usdt in the past maybe 10 years ago or even 8 years ago it would look like like this you know a person who simply know another person whom you may meet at some Metro station or at some Street you bring your money in an envelope exchange it and they are supposed to transfer some cryptocurrency to your wallet we understand that in order to have billions of people in the industry it simply cannot work this way anymore so how can electronic payment methods bank cards and bank accounts successfully work with crypto when the industry was small it was possible to disc completely and comfortably transfer funds to each other and no one paid attention but when the P2P industry began to develop Banks of course got involved because let's be honest in the crypto industry not everything is always 100% clean scammers try to steal money from pensioners receive it on cards then convert it to cryptocurrency withdraw this cryptocurrency from centralized exchanges and then disappear into the Mist actually this happens in a very small percentage of cases there's not even a whole % to be honest we conducted a study and it turned out to be a negligible issue but it still exists and of course Banks don't want any of their clients to get scammed Banks as you probably remember are subject to the central banks of their countries and the central banks see that the crypto industry is growing and set certain requirements I've often said this about regulation and I like the statement by CZ the founder of binance who said the following good regulations will be good for crypto bad regulations will be bad in general it's typically bad when Regulators know nothing about cryptocurrency and try to ban it completely like for example in China in China cryptocurrency trading is not allowed officially everything is prohibited however we know that the Chinese are among the most active users of crypto also for sending money across different parts of the world for various Goods Services Supply and anything else particularly in trade with Russia cryptocurrency is widely used therefore I don't think Chinese regulation is the best example on the other hand there is El Salvador which proclaimed that Bitcoin now is almost a national currency you can buy coffee and pay for lunch in El Salvador using Bitcoin you can even obtain citizenship if you buy and hold a certain amount of Bitcoin in El Salvador so to speak is it a good thing well it sure is it is a progressive country although it's very small it sets an example of how things should be done but of course a large country like the United States of America or Russia for example or China we were speaking about of course for them it would be quite difficult to deal with cryptocurrency so freely what are the governments afraid of governments fear that money might be converted into cryptocurrency and transferred from the country illegally leaving the country without funds is this bad of course it's bad but is it really the case as of today despite the fact that cryptocurrency combines two major features complete transparency and complete anonymity the complete transparency makes cryptocurrencies traceable the simplest example we have is tether if we somehow know that someone has made an improper transaction with tether in usdt and it has been sent to some wallet even a non-custodial one not necessarily on a centralized exchange this tether can be detained you might see in your trust wallet for instance or anywhere else that you have some tether on the balance but you cannot transfer it anywhere this happens all the time read the news from tether they consistently mention that they cooperate with various agencies and perhaps this is a good thing it is good in cases where a crime legal offense or violation has been committed another example that shows the negative effect is connected with sanctions so the United States of America imposed the sanctions on Russia and imposed the sanctions on the guarant Tex Exchange garant is one of the largest OTC providers in Russia meaning it has offices throughout the country especially in Moscow City where you can come with cash pay with it and receive tether to your account in exchange and if you have tether you can easily and conveniently go to any office of guarant Tex for example in Moscow City transfer your usdt and receive your money as cash convenient convenient however nevertheless since there are sanctions all the money that goes through garant are blocked by the largest exchanges accounts are restricted and blocked very often if you made a transfer once by accident if you are a freelancer and received for example $200 in your account for designing a beautiful poster or a nice web page for someone The Exchange will most likely forgive you but if you do this regularly for example you live somewhere abroad rent out your apartment in Moscow or Samara or I don't know even in Finland rent out an apartment and receive crypto which somehow without you even knowing it went through guarant it gets blocked is this fair to Citizens well probably not quite Fair therefore everyone is looking for some loopholes work around so they won't deal with it and have any problems people often do not know where the money comes from for instance you sell a car in Germany and the buyer transfers the money you can't check in advance if it was not transferred through garant at some point yes there are AML Bots and various software that checks transactions generally we should keep in mind a lot of details but let's focus on the main point good regulation the one that helps to hold criminals back is the thing we really need hey we're not done here yet in the second part Vladimir smirkus will give you good and bad examples of regulations and share his opinion on how crypto projects can interact with Regulators as the crypto World Keeps evolving until next time don't forget to like subscribe and hit the Bell button to never miss the new videos from Bloom Academy
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